Strategy
Frontier Markets Equity
The Frontier Markets Equity Composite seeks long-term capital appreciation through investing in companies located, or with primary operations, in Frontier markets (defined as those markets which are not in the MSCI AC World Index) which are experiencing sustainable, strong earnings growth and trading at reasonable valuations relative to market/sector averages.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 30-Jun-2014
Performance figures calculated in USD
Strategy
Investment Approach
- Invest across the entire frontier investment universe, including countries outside the MSCI Frontier Markets Index.
- Rigorous, risk-aware approach to identify quality growing companies trading at attractive valuations.
- Employ fundamental analysis with a focus on returns, balance sheet structure, management team and corporate governance.
- Disciplined approach to valuation. Verify relative valuation appeal versus peers and history.
- Consider macroeconomic and political factors to temper bottom-up enthusiasm.
Portfolio Construction
- Number of holdings: 60-80 stocks
- Individual position sizes typically range from 0.5%-10%
- Country Ranges:
- Index countries: Unconstrained
- Non-index countries: Constrained – 15% limit in any one country
- Sector Ranges: Unconstrained. Maximum 50% in Financials.
- Reserves are typically less than 5%
- Expected Turnover range: 20-40%
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Composite Gross % | 3.53% | 6.47% | 1.67% | 2.58% |
| Composite Net % | 2.55% | 5.47% | 0.70% | 1.62% |
| Benchmark % | 5.87% | 7.02% | -1.28% | -0.93% |
| Excess Return (Gross) % | -2.34% | -0.55% | 2.95% | 3.51% |
Recent Performance
| 3 MonthsData as of 30-Sep-2019 | Year to DateData as of 30-Sep-2019 | |
|---|---|---|
| Composite Gross % | -1.33% | 9.83% |
| Composite Net % | -1.57% | 9.06% |
| Benchmark % | -1.09% | 10.66% |
| Excess Return (Gross) % | -0.24% | -0.83% |
Returns for time periods greater than one year are annualised.
Past performance is not a reliable indicator of future performance.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
MSCI Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Holdings
Total
Holdings
68
Top Purchase
Banca Transilvania
2.79%Top Sale
Grupo Financiero Galicia (E)
0.00%Sectors
Total
Sectors
11
Top Contributor^
Consumer Discretionary
Net Contribution 1.02%Top Detractor^
Financials
Net Contribution -0.73%Largest Overweight
Consumer Discretionary
Largest Underweight
Communication Services
Regions
Total
Regions
5
Top Contributor^
Pacific ex Japan
Net Contribution 3.47%Top Detractor^
Latin America
Net Contribution -2.20%Largest Overweight
Pacific Ex Japan
Largest Underweight
Middle East & Africa
Countries
Total
Countries
26
Top Contributor^
Vietnam
Net Contribution 2.69%Top Detractor^
Argentina
Net Contribution -2.20%Largest Overweight
Vietnam
Largest Underweight
Kenya
Team (As of 31-Aug-2019)
Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.
Mr. Bell has 21 years of investment experience, seven of which have been with T. Rowe Price. Prior to joining the firm in 2011, Mr. Bell was head of emerging markets equities research at Pictet Asset Management (the institutional asset management arm of Pictet & Cie, the largest private bank in Switzerland), where his responsibilities included managing several funds, as well as a team of analysts. During his time at Pictet, Mr. Bell was directly responsible for managing investments in the emerging Europe, Middle East and Africa region as part of the global emerging markets and the standalone Middle East and Africa portfolios. Mr. Bell also managed the Global Emerging Markets High Dividend Yield Equity Strategy.
Mr. Bell has earned a bachelor of science degree in chemistry from Exeter University and also has earned the Investment Management Certificate.
- Portfolio manager2014
since - Years at8
T. Rowe Price - Years investment22
experience
S. Leigh Innes is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's emerging market strategies to institutional clients, consultants and prospects. Ms. Innes is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Ms. Innes has 22 years of investment experience, 17 of which have been at T. Rowe Price. She started at T. Rowe Price in 2002 as a research analyst for emerging market portfolios, and in 2007, she assumed portfolio management responsibility for the Emerging Europe Equity Strategy from Chris Alderson. In 2015, she assumed the role of portfolio specialist. Ms. Innes began her investment career at Merrill Lynch where she was a fund manager/analyst covering Latin America.
Ms. Innes earned an M.A. (with honours) in mathematics from Oxford University. She also has earned the Chartered Financial Analyst designation.
- Years at17
T. Rowe Price - Years investment22
experience
Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.